Is Ola in danger? Central panel issues notice to EV company after…, check report
The Central Consumer Protection Authority (CCPA) has issued a show-cause notice to Ola Electric after receiving thousands of customer complaints.
Is Ola in danger? Central panel issues notice to EV company after…, check report
After numerous customer complaints, the Centre has decided to intervene and address issues concerning Ola Electric's service, Business Today reported, citing government sources. According to the news outlet, the Central Consumer Protection Authority (CCPA) issued a show-cause notice to Ola following thousands of complaints from the electric scooter manufacturer's customers. The notice, dated October 3, states that the Bengaluru-based company has violated several provisions of the Consumer Protection Act, 2019. These violations include misleading advertisements, unfair trade practices, service deficiencies, and consumer rights violations.
15-Day Deadline For Clarification
As per Business Today, the CCPA has given Ola 15 days period to respond.
Over 10000 Complaint Filed Against Ola
From September last year to the end of August 2024, the National Consumer Helpline kept track of complaints about Ola's e-scooters. Under the administration of the Department of Consumer Affairs, they reported a whopping 10,644 complaints. The issues ranged from service delays, which accounted for 3,389 of complaints, to delays in deliveries, totaling 1,899 issues. There were also 1,459 complaints about promises made on services that were not kept.
Notice Highlights Several Customer Problems
The notice highlights a series of complaints from disgruntled customers. These grievances range from flaws in the production of vehicles and selling second-hand scooters, to absence of reimbursement for reservations that got cancelled. Further, persistent issues post-services, overpriced charges, uneven billing, and recurrent battery problems were also brought up. Moreover, unprofessional conduct and situations that remained unaddressed were also part of the complaint list.
Ola Is Under Radar
According to sources, Ola Electric might have violated several parts of the Consumer Protection Act. The head of the Department of Consumer Affairs, Nidhi Khare, mentioned that the CCPA is actively investigating a number of complaints lodged against Ola Electric. The main gripe seems to stem from subpar service. Khare made it clear, saying "We are counting on the firm to promptly address these complaints and provide resolutions for their consumers."
However, the company has not commented on the matter yet.
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